Medifast, the parent company of OPTAVIA, announced its first quarter 2024 financial results, posting $174.7 million in total revenue, a 49.9% decline when compared to the same quarter last year. The company primarily attributes this significant dip in revenue to the decrease in the number of active earning OPTAVIA Coaches and lower productivity. Total OPTAVIA Coaches decreased by 35.6% to 37,800, down from 58,700 in Q1 2023. Average revenue per active earning OPTAVIA Coach was $4,623, down from $5,945 last year’s quarter.
In tandem, gross profit declined 48.3% year over year to $127.3 million. This dip is a result of lower revenue but was partially offset by efficiencies in inventory management and cost savings from the company’s Fuel for the Future initiatives. Earnings per share during the period were $0.76. Net income was $8.3 million.
“Our new model is highly differentiated from competitors, with a holistic approach including our habit-based and Coach guided solution along with nutrition products and community support,” said Dan Chard, Chairman and Chief Executive Officer. “It will be supported by a reimagined framework for customer acquisition, with a new company-led national marketing campaign, enhancing both awareness of the benefits of our approach, and the visibility of our brand. While 2024 will be a year of investment for future growth, we believe the initiatives we are undertaking will be foundational in creating a platform for sustained company growth in the years ahead.”
The company ended the quarter with $156.4 million in cash, cash equivalents and investment securities with no interest-bearing debt.
